port of duluth-superior cargoes - 83rd minnesota legislature
TRANSCRIPT
Slide 1Port of Duluth-Superior
Duluth-Superior to/from: Northern Europe 15 days Spain 15 days Italy/North Africa 18 days
CHS General Mills S&X
Lake Superior Warehousing
Northland Pier
Clure Public Marine Terminal
20 active bulk cargo docks;
1 breakbulk terminal
Cargo Projection 2016 Total tonnage: 30.1 million st Iron Ore 14.9M st, Coal 10.2M st, Grain 1.6M st, Other 3.3M st
3.3
1.6
10.2
14.9
Presenter
Presentation Notes
2016 – Not a banner year for shipping through the Twin Ports or across Great Lakes Volumes of iron ore, coal, limestone fell below 5-year averages. Coal hit its lowest total in nearly 30 years. Just under 31 M short tons But – Bright spots: The last quarter was much stronger than the first 3. Grain up nearly 20% over last year as was US Grain through the Seaway During the last two months of the season, with maybe 4 ships to be counted, we saw an uptick in iron ore shipments, ending season at 6.8% ahead of last year. December’s Iron Ore tonnage was 15.5% ahead of last year’s December Iron Ore tonnage. Both domestic steel and domestic iron ore production are making a comeback. Iron ore has stabilized, and is now clawing its way back. All pellet production facilities on the range will be up and running at the start of the 2017 season in March. We anticipate a stronger start to the shipping season in 2017.
Chart1
3.3
1.6
10.2
14.9
Other
Grain
Coal
Dry-bulk commodities handled at the Port’s 20 commercial docks
Presenter
Presenter
Presentation Notes
In a typical year, 20-30% of cargoes through our port comes from or is headed to a Canadian Port. Canada has always been considered a domestic trading partner b/c Unintended consequences of tariffs and trade agreements on foreign goods/commodities needs to be carefully weighed, particularly in these great Lakes
Grain - Current Market Location: • Located on the edge of significant
Red Spring Wheat, Durum Wheat, Soybean, and Sugar Beet acreage/production
• Excellent rail connections to the US & Canadian Agricultural Heartland
Current Market: • Grain is fourth in total Port
tonnage, averaging nearly 1.4 million MT per year, but dominates the overseas trade
• 80% of Duluth-Superior’s grain is exported via the St. Lawrence Seaway, 20% Domestic Millers
Grain Handling & Transportation Facilities
Presentation Notes
We also see barley, oats, rye, canola, peas, sunflower seeds, Catchment area is shrinking due to the – unit train loaders & newer facilities within the Pacific Northwest (Seattle, Vancouver) & consumption shifts to Oriental Nations
Grains & Destinations Top 5 Grains: • Spring Wheat • Durum Wheat • Sugar Beet Pulp Pellets • Canola • Flax Seed Top 10 Destinations: • Canada (Transshipment) • Italy • Algeria • Belgium • Spain • Netherlands • Tunisia • United Kingdom • Morocco • Portugal
Clure Public Marine Terminal
Outdoor Operations Area ~ 40 Acres Indoor Warehouse Space ~ 400,000+ sq ft
Paper Industry – Northern MN
Clure Public Marine Terminal
Presentation Notes
From Brazil – Value added For example, Verso has shut down facilities around the country producing “super calendar” paper, but has remained open in Duluth partially due to its raw material input cost advantage. The Port plays a role in that competitiveness.
Paper Industry – Northern MN
Raw Materials & Finished Craft
Presentation Notes
Another raw material brought in for Verso is pulp that goes into the production of their craft (aka paper). This pulp is brought in by…. Blandin Paper and Verso both utilize Duluth Cargo Connect as a distribution hub for access to multiple railroads. Both facilities are serviced only by BNSF, Duluth Cargo Connect gets them access to CN, CP, and UP, with distribution across North America.
Wind Project Cargo
Presentation Notes
Wind products come from all over the world for projects in North America. Domestic production may also ship all over the world. Most recently, LM Wind, located in Grand Forks, ND, shipped 15 blades to Germany in 2015.
Wind Projects via Port of Duluth
Hewitt, MN
Trimont, MN
New York
Mountain Iron, MN
Over 1 million freight tons of wind cargo handled since 2005
Oliver County, ND
Saint Leon, Manitoba
Top of Iowa
Presentation Notes
Taconite Ridge Wind Energy Farm – Mt Iron, MN (USS Minnesota Ore Operations – Aka “Minntac”) All components came through the port of Duluth Pipestone MN, Luverne MN, Worthington, Elm Creek, Trimont, Mower County.
Dimensional Freight
Presentation Notes
Top – Left: Iron Ore from MN & UP of MI to Essar Algoma in Sault Ste. Marie, ONT. Algoma produces steel, rolls it, and some comes back into the US for distribution in the Midwest through the Port of Duluth. Uses include metal fabrication for structural steel. Bottom-Left: Crated generator from UK to N MN paper mill Top-Right: Generator sets from Finland to various businesses for backup power generation. (Definitely gone to the twin cities market) Bottom-right: Mining equipment for Nothern MN iron ore mines
Heavy Lift/Project Cargo
Heavy Lift Cargo
Primary Trade Lanes for Breakbulk Cargo through Port of Duluth
Connectivity:
Road and Rail
Project Cargo Challenges
MnDOT FASTLANE Grant Application - December 2016 Twin Ports Interchange $120 M Project $$45 M Grant Request Driven by Freight through the Twin Ports
Martin Associates (Oct. 2011)
11,510 JOBS ♦
218.727.8525 www.duluthport.com Deb DeLuca Director of Government and Environmental Affairs 218-727-8525; [email protected]
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Grain - Current Market
Duluth-Superior to/from: Northern Europe 15 days Spain 15 days Italy/North Africa 18 days
CHS General Mills S&X
Lake Superior Warehousing
Northland Pier
Clure Public Marine Terminal
20 active bulk cargo docks;
1 breakbulk terminal
Cargo Projection 2016 Total tonnage: 30.1 million st Iron Ore 14.9M st, Coal 10.2M st, Grain 1.6M st, Other 3.3M st
3.3
1.6
10.2
14.9
Presenter
Presentation Notes
2016 – Not a banner year for shipping through the Twin Ports or across Great Lakes Volumes of iron ore, coal, limestone fell below 5-year averages. Coal hit its lowest total in nearly 30 years. Just under 31 M short tons But – Bright spots: The last quarter was much stronger than the first 3. Grain up nearly 20% over last year as was US Grain through the Seaway During the last two months of the season, with maybe 4 ships to be counted, we saw an uptick in iron ore shipments, ending season at 6.8% ahead of last year. December’s Iron Ore tonnage was 15.5% ahead of last year’s December Iron Ore tonnage. Both domestic steel and domestic iron ore production are making a comeback. Iron ore has stabilized, and is now clawing its way back. All pellet production facilities on the range will be up and running at the start of the 2017 season in March. We anticipate a stronger start to the shipping season in 2017.
Chart1
3.3
1.6
10.2
14.9
Other
Grain
Coal
Dry-bulk commodities handled at the Port’s 20 commercial docks
Presenter
Presenter
Presentation Notes
In a typical year, 20-30% of cargoes through our port comes from or is headed to a Canadian Port. Canada has always been considered a domestic trading partner b/c Unintended consequences of tariffs and trade agreements on foreign goods/commodities needs to be carefully weighed, particularly in these great Lakes
Grain - Current Market Location: • Located on the edge of significant
Red Spring Wheat, Durum Wheat, Soybean, and Sugar Beet acreage/production
• Excellent rail connections to the US & Canadian Agricultural Heartland
Current Market: • Grain is fourth in total Port
tonnage, averaging nearly 1.4 million MT per year, but dominates the overseas trade
• 80% of Duluth-Superior’s grain is exported via the St. Lawrence Seaway, 20% Domestic Millers
Grain Handling & Transportation Facilities
Presentation Notes
We also see barley, oats, rye, canola, peas, sunflower seeds, Catchment area is shrinking due to the – unit train loaders & newer facilities within the Pacific Northwest (Seattle, Vancouver) & consumption shifts to Oriental Nations
Grains & Destinations Top 5 Grains: • Spring Wheat • Durum Wheat • Sugar Beet Pulp Pellets • Canola • Flax Seed Top 10 Destinations: • Canada (Transshipment) • Italy • Algeria • Belgium • Spain • Netherlands • Tunisia • United Kingdom • Morocco • Portugal
Clure Public Marine Terminal
Outdoor Operations Area ~ 40 Acres Indoor Warehouse Space ~ 400,000+ sq ft
Paper Industry – Northern MN
Clure Public Marine Terminal
Presentation Notes
From Brazil – Value added For example, Verso has shut down facilities around the country producing “super calendar” paper, but has remained open in Duluth partially due to its raw material input cost advantage. The Port plays a role in that competitiveness.
Paper Industry – Northern MN
Raw Materials & Finished Craft
Presentation Notes
Another raw material brought in for Verso is pulp that goes into the production of their craft (aka paper). This pulp is brought in by…. Blandin Paper and Verso both utilize Duluth Cargo Connect as a distribution hub for access to multiple railroads. Both facilities are serviced only by BNSF, Duluth Cargo Connect gets them access to CN, CP, and UP, with distribution across North America.
Wind Project Cargo
Presentation Notes
Wind products come from all over the world for projects in North America. Domestic production may also ship all over the world. Most recently, LM Wind, located in Grand Forks, ND, shipped 15 blades to Germany in 2015.
Wind Projects via Port of Duluth
Hewitt, MN
Trimont, MN
New York
Mountain Iron, MN
Over 1 million freight tons of wind cargo handled since 2005
Oliver County, ND
Saint Leon, Manitoba
Top of Iowa
Presentation Notes
Taconite Ridge Wind Energy Farm – Mt Iron, MN (USS Minnesota Ore Operations – Aka “Minntac”) All components came through the port of Duluth Pipestone MN, Luverne MN, Worthington, Elm Creek, Trimont, Mower County.
Dimensional Freight
Presentation Notes
Top – Left: Iron Ore from MN & UP of MI to Essar Algoma in Sault Ste. Marie, ONT. Algoma produces steel, rolls it, and some comes back into the US for distribution in the Midwest through the Port of Duluth. Uses include metal fabrication for structural steel. Bottom-Left: Crated generator from UK to N MN paper mill Top-Right: Generator sets from Finland to various businesses for backup power generation. (Definitely gone to the twin cities market) Bottom-right: Mining equipment for Nothern MN iron ore mines
Heavy Lift/Project Cargo
Heavy Lift Cargo
Primary Trade Lanes for Breakbulk Cargo through Port of Duluth
Connectivity:
Road and Rail
Project Cargo Challenges
MnDOT FASTLANE Grant Application - December 2016 Twin Ports Interchange $120 M Project $$45 M Grant Request Driven by Freight through the Twin Ports
Martin Associates (Oct. 2011)
11,510 JOBS ♦
218.727.8525 www.duluthport.com Deb DeLuca Director of Government and Environmental Affairs 218-727-8525; [email protected]
Slide Number 1
Slide Number 2
Slide Number 3
Slide Number 4
Slide Number 5
Slide Number 6
Slide Number 7
Grain - Current Market